With the return of Sam Altman, the power struggle at OpenAI has come to a close, allowing Adobe to refocus its attention on its relational Artificial game. The technology behemoth has reportedly internally communicated its acquisition of Rephrase, a California-based text-to-video company, as per reports from the Economic Times.
Although the specific financial terms of the agreement have not been disclosed, it is anticipated to strengthen Adobe’s Creative Cloud product line, which has progressively integrated general AI advancements recently. Rephrase specializes in enabling users to create high-quality videos simply through text inputs.
CEO Ashray Malhotra announced Rephrase’s acquisition in a LinkedIn post, hinting at the purchaser as a ‘leading tech giant’ without explicitly naming Adobe. Malhotra cited current restrictions for refraining from disclosing further details.
Founded in 2019 by Malhotra, Nisheeth Lahoti, and Shivam Mangla, Rephrase provides businesses access to “Rephrase Studio,” a platform that facilitates the rapid development of professional videos featuring dynamic avatars. Users can choose a movie model, avatar, voice, and input content to effortlessly produce engaging videos.
Rephrase’s platform simplifies the video production process by aligning scripts with avatars upon user command, offering extensive customization options such as avatar adjustments, background changes, and audio enhancements for a more authentic output.
In the past four years, Rephrase has garnered over 50,000 clients and raised nearly $14 million in funding from investors like Red Ventures and Lightspeed India. The company’s unique proposition revolves around aiding businesses and influencers in creating personalized videos with custom avatars, including brand representatives or key personalities.
Post-acquisition, Adobe plans to integrate Rephrase’s capabilities into its portfolio, particularly enhancing its offerings in relational AI-generated videos. Ashley Also, Senior VP and GM of Adobe Creative Cloud, highlighted the value of Rephrase’s expertise in relational AI video and audio systems, emphasizing accelerated customer value delivery.
Adobe’s strategic emphasis on conceptual AI is evident through recent product advancements, such as Fly, an AI-driven image creation tool integrated into Creative Cloud applications like Photoshop. The company showcased advanced conceptual AI-driven video features at its Max conference, hinting at potential integration of Rephrase’s avatar-based functionalities in upcoming releases.
This acquisition aligns with Adobe’s dedication to innovation through talent and technology acquisition, with the goal of improving its solutions and providing enhanced value to customers. Adobe Creative Cloud’s suite of tools for audio and video production, including Premiere Pro, After Effects, Audition, Character Animator, and Media Encoder, continues to dominate the digital content creation landscape, catering to professionals and enthusiasts alike.
